5 Ways Mass Surveillance Is Destroying Our Economy

Prosperity Requires Privacy

Privacy is a prerequisite for a prosperous economy. Even the White House admits:

People must have confidence that data will travel to its destination without disruption. Assuring the free flow of information, the security and privacy of data, and the integrity of the interconnected networks themselves are all essential to American and global economic prosperity, security, and the promotion of universal rights.

That doesn’t even take into account the just-revealed NSA program of infecting virtually all popular Western hard drives with spyware. This will cause huge markets like China to insist that locally-produced hard drives be used, to make it harder for the NSA to hack into them.

So the NSA’s shenanigans are hurting dual pillars of the U.S. tech sector: computers and Internet. (The sale of mobile devices mightnotbe far behind.)

2. Trust and the Rule of Law – Two Main determinants of Prosperity – Are Undermined By Surveillance

The Fraser Institute’s latest Economic Freedom of the World Annual Report is out, and the news is not good for the United States. Ranked among the five freest countries in the world from 1975 through 2002, the United States has since dropped to 18th place.

The United States has plummeted to 18th place in the ranked list, trailing such countries as Estonia, Taiwan, and Qatar.

***

Actually, the decline began under President George W. Bush. For 20 years the U.S. had consistently ranked as one of the world’s three freest economies, along with Hong Kong and Singapore. By the end of the Bush presidency, we were barely in the top ten.

And, as with so many disastrous legacies of the Bush era, Barack Obama took a bad thing and made it worse.

Economic historian Niall Ferguson notes, draconian national security laws are one of the main things undermining the rule of law:

We must pose the familiar question about how far our civil liberties have been eroded by the national security state – a process that in fact dates back almost a hundred years to the outbreak of the First World War and the passage of the 1914 Defence of the Realm Act. Recent debates about the protracted detention of terrorist suspects are in no way new. Somehow it’s always a choice between habeas corpus and hundreds of corpses.

So lawlessness infringement of our liberty is destroying our prosperity.

Put another way, lack of privacy kills the ability to creatively criticize bad government policy … and to demand enforcement of the rule of law. Indeed, 5,000 years of history shows that mass surveillance is always carried out to crush dissent. In other words, mass surveillance is the opposite of the principle of the rule of law (in distinction to the rule of men) upon which America was founded.

3. The Free Flow of Information Requires Privacy

Moreover, surveillance hampers the free flow of information as many people begin to watch what they say. The free flow of information is a core requisite for a fast-moving economy … especially an information economy, as opposed to economies focused on resource-extraction or manufacturing.

Remember, American and British spy agencies have intentionally weakened security for many decades. And it’s getting worse and worse. For example, they plan to use automated programs to infect millions of computers.

How much time and productivity have we lost in battling viruses let in because of the spies tinkering? How much have we lost because “their” computer programs conflict with “our” programs?

Microsoft’s general counsel labels government snooping an “advanced persistent threat,” a term generally used to describe teams of hackers that coordinate cyberattacks for foreign governments. It is well-known among IT and security professionals that hacking decreases employee productivity. While they’re usually referring to hacking by private parties, the same is likely true for hacking by government agencies, as well.

Bill Binney – the high-level NSA executive who created the agency’s mass surveillance program for digital information, a 32-year NSA veteran widely regarded as a “legend” within the agency, the senior technical director within the agency, who managed thousands of NSA employees – tells Washington’s Blog:

The other costs involve weakening systems (operating systems/firewalls/encryption). When they do that, this weakens the systems for all to find. Hackers around the world as well as governments too.

These costs are hard to count. For example, we hear of hackers getting customer data over and over again. Is that because of what our government has done?

Or, how about all the attacks on systems in government? Are these because of weakened systems?

5. Creativity – A Prime Driver of Prosperity – Requires Privacy

• Innovation, creativity and the resultant prosperity of a society requires freedom;

• Privacy is the essence of freedom: Without privacy, individual human rights, property rights and civil liberties – the conceptual engines of innovation and creativity, could not exist in a meaningful manner;

• Surveillance is the antithesis of privacy: A negative consequence of surveillance is the usurpation of a person’s limited cognitive bandwidth, away from innovation and creativity.

The Financial Post reported last year: “Big Brother culture will have adverse effect on creativity, productivity“.

The success of economies in developed nations relies increasingly on their creative output, and if that success is to continue we must remember that creativity is the product of curiosity, which in turn is the product of privacy.

Silicon Valley is currently one of the largest drivers of the U.S. economy. Do you think Bill Gates and Steve Jobs could have tinkered so creatively in their garages if the government had been watching everything they do?

Everyone who has every done anything creative knows that you need a little privacy to try different things before you’re ready to go public with it. If your bench model, rough sketch or initial melody is being dissected in real time by an intrusive audience … you’re not going to be very creative. And see this.

FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of political, economic, scientific, and educational issues. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: